It’s not just one thing. Corrupting is a big part as extracting money from a government via good policies doesn’t work but handling a government project does.
Businesses and money can move outside the country, infrastructure can’t. Subsidize someone manufacturing heavy equipment or other businesses and the business is ultimately at a disadvantage as long as it stays where it is. It would be better off relocating so you’re stuck with an endless handout which stops working when the oil money runs out.
However large scale projects like roads have huge ongoing costs without directly generating revenue. A hotel should be self sustaining and revenue producing after construction.
And beyond corruption, foreign investment, cheap foreign labor, prestige, etc all play a role.
Businesses and money can move outside the country, infrastructure can’t. Subsidize someone manufacturing heavy equipment or other businesses and the business is ultimately at a disadvantage as long as it stays where it is. It would be better off relocating so you’re stuck with an endless handout which stops working when the oil money runs out.
However large scale projects like roads have huge ongoing costs without directly generating revenue. A hotel should be self sustaining and revenue producing after construction.
And beyond corruption, foreign investment, cheap foreign labor, prestige, etc all play a role.